Forget Critical Minerals: A STEEL Boom is Underway | Australian Markets
Today, James Cooper unpacks India’s growth strategy: Boosting metal manufacturing by 50%, in simply 5 years. Read on to be taught how you may take part as India tries to secure its provide chain of steel-making commodities.
This piece from Reuters caught my consideration final month:
“India urging firms to acquire overseas iron ore, coking coal assets, official says”
The transient: India, the world’s second-largest metal producer, is trying to increase its steelmaking capability to 300 million tonnes by 2030, up from about 200 million tonnes.
The nation’s steelmaking corporations are on discover; they have to secure the uncooked supplies needed to speed up India’s steelmaking ambitions.
You can learn the total piece right here.
Mining Memo’s Take
While the West obsesses over securing provide chains of vital minerals, like Rare Earths, Copper, and Antimony… India is going back to fundamentals.
The nation is doubling down on metal manufacturing, and to try this, it should secure fundamental industrial uncooked supplies.
So, what does that imply for Aussie miners?
India has quickly ascended to change into the world’s second-largest metal producer.
But it’s nonetheless a long manner from the primary spot, held firmly by China.
Last yr, China produced round one billion tonnes of metal, 5 occasions more than India.
So, whereas India stays a minnow in comparison with China, its output growth might quickly explode:
As the article outlines, India needs to spice up metal manufacturing by 50% in simply 5 years.
Investors ought to take note of what’s occurring right here, particularly when officers discuss of ‘buying up’ corporations within the steel-making provide chain.
So, will that elevate Aussie iron ore miners?
Perhaps a little.
But it’s important to grasp that a metal manufacturing surge in India will look far completely different from the early 2000s China-fuelled growth. As you recognize, the principle sport was iron ore stocks back then.
Yet, India is already a main producer of this uncooked materials, which limits the upside for iron ore miners in Australia.
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For that cause, COKING COAL might be the principle sport this time round.
Coking coal: The key ingredient in metal making, which India doesn’t have
Why does coking coal matter a lot for a nation trying to ramp up metal manufacturing?
Well, it lies within the workings of how metal is made…
In truth, the entire course of begins with coking coal, which is heated to very high temperatures, turning it into a near-pure carbon product referred to as coke.
Coke is then burned in a furnace with iron ore to attain extraordinarily high temperatures, creating a liquid metallic that removes oxygen from the iron ore.
Ultimately, coking coal is the important thing ingredient that strengthens metal.
But not like iron ore, India imports the bulk of its coking coal, a whopping 85%.
That’s one cause I issued a strategic BUY alert to my premium membership group two weeks in the past.
An ASX junior trying to construct a main coking coal project.
A project that occurs to take a seat between the world’s two largest steel-producing nations, India and China.
Although the stock price has fallen closely in 2025, its fortunes might flip quickly given India’s latest bulletins.
Indian metal corporations are on discover.
Government officers in India have directed their metal makers to buy up worldwide property and secure the nation’s steel-making provide chain.
Our latest advice matches this chance completely. But it comes with an extra bonus…
This ASX-listed junior holds a particular kind of ‘rare’ coking coal that improves steel-making effectivity and lowers metal makers’ prices.
This means it holds a premium product within the coronary heart of international steelmaking. This might be a precious asset over the approaching years.
If you’d like to search out out more, you are able to do so right here.
Regards,
James Cooper,
Editor, Mining: Phase One and Diggers and Drillers
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All advice is common advice and has not taken under consideration your personal circumstances.
Please search unbiased financial advice relating to your own scenario, or if doubtful in regards to the suitability of an investment.
James Cooper has been a working geologist in mines throughout Australia, Canada, and Africa because the early 2000s. He’s led the operations of tiny explorers by way of to very large producer outfits. He’s seen booms and busts firsthand and he additionally understands the cyclical nature of particular person commodities. For instance, James was proper there when Barrick Gold launched an huge $7.5 billion takeover bid for Equinox. That was the height of the final cycle.
With his background as a geo and finance skilled, he brings a distinctive insight and expertise to Fat Tail Investment Research. He writes the broader resource-focused investing letter Diggers and Drillers and the ultra-speculative explorer-focused trading service Mining: Phase One.
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